Cigna Group Reports Strong Q2 Results, Shares Rise

Shares of Cigna Group surged 0.9% in premarket trading on Thursday, reaching a six-month high, following the release of their impressive second-quarter results. The health insurer experienced significant growth in both pharmacy and medical customers, exceeding market expectations.

Earnings and Revenue

Cigna Group reported a net income of $1.46 billion, or $4.92 per share, for the quarter. This surpassed their performance from the year-ago period, which saw a net income of $1.56 billion, or $4.89 per share. After excluding nonrecurring items, adjusted earnings per share slightly declined to $6.13 from $6.20. Nonetheless, it still exceeded the FactSet consensus of $6.03.

Total revenue for the company displayed solid growth, increasing by 6.8% to reach $48.59 billion. This exceeded the FactSet consensus of $47.24 billion.

Customer Growth

Cigna Group witnessed a notable increase in their customer base during the second quarter. The total number of pharmacy customers grew by 4.1% to reach 98.64 million, while the total number of medical customers increased by 9.5% to 19.51 million.

Future Outlook

Looking ahead to 2023, Cigna Group anticipates adjusted earnings per share to be "at least" $24.70. This forecast, however, falls slightly below the FactSet consensus of $24.80.

Market Performance

Over the past three months, Cigna's stock has been performing exceptionally well, rising by 21.7%. In comparison, the S&P 500 witnessed a more modest gain of 10.3% during the same period.

Cigna Group's impressive second-quarter results and optimistic outlook for the future have undoubtedly contributed to the surge in its stock price.